Thyssenkrupp, in bidding for submarine contract, looks to WA

Western Australia is likely to have a role in making components for the nation's future fleet of submarines, the chief of a company bidding to design and build the vessels says.

Thyssenkrupp Marine Systems Australia is proposing that a large part, if not all, of the construction and component manufacturing be done in Australia.

Thyssenkrupp CEO Philip Stanford has been in WA looking at the capabilities of local companies.

Mr Stanford said those that provide for the offshore oil and gas industry should be well placed.

"There's approximately 350,000 items in a submarine. It's one of the most complex things you can actually build, more complex than a space shuttle," he said.

"So if you think of all those individual components, whether it's from HP air systems to hydraulic systems, the valves, the various water systems, they're common throughout the marine industry.

"Any of the companies in Western Australia that deliver that for the offshore oil and gas industry or the general marine industry, there's good opportunity for them to be involved in delivering some of those systems or manufacturing part of those systems to be then consolidated in a submarine wherever that is determined by the Government."

Selection process for companies wanting to be involved

Mr Stanford said it was expected the work would be shared around Australia, to an extent.

"One of our first actions on being selected for the submarine project would be to look at the list of companies we've got, 3,450 companies that are in the submarine supply chain, that have registered an interest in being part of the submarine supply chain," he said.

"We'd go through a qualification process, a selection process to identify the right companies to be involved in the program."

Philip Stanford had served on Oberon and Collins class submarines in the Australian Navy before joining thyssenkrupp.

He said Australia's particular needs for a submarine were similar to those of Germany.

"The Indian Ocean on the west and the Pacific Ocean on the east, very deep oceans and we also have to take into account the Southern," he said.

"We actually do a lot of operating in the northern regions where it can also be very shallow, so we have a requirement to be able to handle both shallow and deep.

"That's not uncommon, particularly for Germany - they operate in the Atlantic, very deep blue water ocean, as well as places like the Baltic and the Mediterranean which are more shallow, restricted.

"So we design submarines for the complete range."

The Defence Department will make a recommendation to Defence Minister Marise Payne regarding groups bidding for the Collins class submarine replacement contract.